Anglo-Australian mining giant Rio Tinto proposes to jointly
invest up to $2 billion with local partners in developing iron ore mines in
Odisha over the next few years.
Rio Tinto has, over the past two years, renegotiated an
agreement with OMC to develop and mine three iron ore deposits in Keonjhar
district of Odisha.
“We expect to finalize the agreement in the near term,†said
Dr Nik Senapati, Managing Director, Rio Tinto India. Rio Tinto owns 51 per cent
stake in the joint venture in which Orissa Mining Corporation (OMC) and NMDC
have 44 per cent and 5 per cent stake each.
The proposed agreement is awaiting the go-ahead from the
Odisha Chief Minister, Mr Naveen Patnaik. As part of the renegotiated pact, the
Rio Tinto joint venture will sell iron ore to domestic steel firms, Dr Senapati
said.
Rio Tinto will bring in its expertise in exploration,
sustainable mining and beneficiation practices to develop the ore bodies owned
by OMC.
“We are looking at a scale of between 5 million to 25
million tonnes per annum in the long term,” Dr Senapati told a group of
visiting journalists. Total investments could go up to $2 billion with each
joint venture partner investing in proportion to their holdings.
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